Sensex, Nifty stay in bulls grip during late morning session

Indian equity benchmarks remained in the bulls grip during late morning session, on the back of positive cues from other Asian markets. Traders got encouragement, after India's dominant services sector expanded at the fastest pace in 11 years in May on strong demand, although inflationary pressures touched new highs, restricting optimism and weighing on consumers' pocketbooks. The S&P Global India Services Purchasing Managers' Index rose to 58.9 in May from 57.9 in April, its highest since April 2011 and comfortably beating the Reuters poll expectation of 57.5.

Besides, Care Ratings in its latest report has said that bank credit to non-banking financial companies (NBFCs) grew in double digit in FY22 with outstanding bank credit to them rising by 10.4 per cent to Rs 10.5 lakh crore on the back of improvement in overall economic activities and banks' renewed focus on the NBFC sector following improvement in their balance sheets.

On the global front, Asian markets were trading in green, after the services sector in Japan continued to expand in May, and at a faster rate, the latest survey from Jibun Bank revealed on Friday with a services PMI score of 52.6. That's up from 50.7 in April, and it moves further above the boom-or-bust line of 50.

The BSE Sensex is currently trading at 56333.51, up by 515.40 points or 0.92% after trading in a range of 56200.68 and 56432.65. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.14%, while Small cap index was up by 0.17%.

The top gaining sectoral indices on the BSE were IT up by 1.79%, TECK up by 1.48%, Energy up by 0.99%, Oil & Gas up by 0.56% and Capital Goods up by 0.56%, while Power down by 1.62%, Utilities down by 1.50%, Basic Materials down by 1.01%, Auto down by 0.72% and PSU down by 0.28% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.88%, Infosys up by 2.50%, Wipro up by 2.12%, HCL Tech up by 2.03% and Larsen & Toubro up by 1.74%. On the flip side, Ultratech Cement down by 3.45%, NTPC down by 2.39%, Mahindra & Mahindra down by 1.39%, Maruti Suzuki down by 1.04% and Asian Paints down by 0.89% were the top losers.

Meanwhile, the commerce ministry in its latest data has showed that India's merchandise exports rose by 15.46 per cent to $37.29 billion in May 2022 as compared to $32.30 billion in the same month last year on account of healthy performance by sectors like petroleum products, electronic goods and chemicals. India's merchandise imports in May 2022 surged by 56.14 per cent to $60.62 billion as compared to $38.83 billion in May 2021. India's merchandise export in April-May 2022-23 rose to $77.08 billion, posting an increase of 22.26 per cent over $63.05 billion in the corresponding period of the previous year. India's merchandise imports in April-May 2022-23 stood at $120.81 billion with an increase of 42.35 per cent over $84.87 billion in April -May 2021-22. The trade deficit in May 2022 widened to $23.33 billion from $6.53 billion recorded in the same month last year.

According to the data, value of non-petroleum exports in May 2022 was $29.18 billion, registering a positive growth of 8.13% over non-petroleum exports of $26.99 billion in May 2021. The cumulative value of non-petroleum exports in April -May 2022-23 was $61.09 billion, an increase of 12.9% over $54.11 billion in April -May 2021-22. Value of non-petroleum and non-gems and jewellery exports in May 2022 was $26.08 billion, registering a positive growth of 8.57% over non-petroleum and non-gems and jewellery exports of $24.02 billion in May 2021. The cumulative value of non-petroleum and non-gems and jewellery exports in April -May 2022-23 was $54.52 billion, an increase of 14.15% over cumulative value of non-petroleum and non-gems and jewellery exports of $47.76 billion in April -May 2021-22.

It further indicated that value of non-petroleum imports was $42.48 billion in May 2022 with a positive growth of 44.7% over non-petroleum imports of $29.36 billion in May 2021. The cumulative value of non-petroleum imports in April -May 2022-23 was $82.55 billion, showing an increase of 27.72% compared to non-oil imports of $64.63 billion in April -May 2021-22. Value of non-oil, non-GJ (gold, silver & Precious metals) imports was $33.61 billion in May 2022 with a positive growth of 27.2% over non-oil and non-GJ imports of $26.42 billion in May 2021. Non-oil, non-GJ (Gold, Silver & Precious Metals) imports in April -May 2022-23 was $69.25 billion, recording a positive growth of 30.71%, as compared to non-oil and non-GJ imports of $52.97 billion in April -May 2021-22.

The CNX Nifty is currently trading at 16747.70, up by 119.70 points or 0.72% after trading in a range of 16710.15 and 16793.85. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Reliance Industries up by 2.92%, Infosys up by 2.49%, Wipro up by 2.11%, HCL Tech. up by 2.01% and Larsen & Toubro up by 1.72%. On the flip side, Grasim Industries down by 5.51%, Shree Cement down by 3.67%, Ultratech Cement down by 3.46%, NTPC down by 2.48% and Apollo Hospital Ent. down by 1.57% were the top losers.

Asian markets were trading in green; Nikkei 225 jumped 311.89 points or 1.14% to 27,725.77, Straits Times surged 0.85 points or 0.03% to 3,227.57, KOSPI added 8.84 points or 0.33% to 2,667.83 and Jakarta Composite advanced 62.34 points or 0.87% to 7,211.06.